Brian Lenihan Jnr (Dublin West, Fianna Fail)

Income tax will apply on a progressive basis to those with higher incomes reflecting their capacity to make a greater contribution. These changes pose a challenge but we cannot continue with the current system, with its myriad anomalies. I look forward to working with my colleagues in the Government on this reform and the closer integration of the tax and social welfare system.

BROADENING THE TAX BASE

In the renewed programme for Government, we have accepted the recommendations of the Commission on Taxation on the need for a property tax. Considerable groundwork will need to be done before a site valuation tax can be introduced. Work will shortly begin on the registration of ownership and the valuation of land.

The renewed programme for Government also contains a commitment to introduce a system of water metering for homes. Preparations are under way in this regard. Water charges, when introduced, will be based on consumption above a free allocation. Further details will be announced by the Minister for the Environment, Heritage and Local Government.

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